- Ascot Resources (TSX:AOT) has signed an agreement with a syndicate of underwriters to raise a total of C$25 million
- Under the terms of the financing, led by Desjardins Capital Markets and Stifel GMP, the company will issue approximately 29.41 million common shares at 85 cents each
- The proceeds will be used to continue development of the company’s Premier Gold Project in British Columbia
- Ascot Resources will pay the underwriters a cash commission worth five per cent of the total funds raised
- Ascot Resources (AOT) is currently down 2.22 per cent and is trading at 88 cents per share, with a market cap of $216.86 million
Ascot Resources (TSX:AOT) has signed an agreement with a syndicate of underwriters to raise a total of C$25 million.
Headquartered in Vancouver, the exploration and development company is primarily focused on reviving the past-producing Premier gold mine, located in British Columbia’s Golden Triangle.
The Premier Gold Project covers 8,133 hectares and hosts three key deposits, as well as a number of exploration targets. It originally opened in 1918 and was North America’s largest gold mine until its closure in 1952. Over its lifetime the mine produced two million ounces of gold and 45 million ounces of silver.
According to drill results from 2019’s field season, the Premier Gold Project holds a total indicated mineral resource of approximately 1.1 million ounces of gold and around 4.7 million ounces of silver.
Under the terms of the agreement, Desjardins Capital Markets and Stifel GMP will lead a syndicate of underwriters to purchase, on a bought-deal basis, a total of 29,412,000 common shares at a price of $0.85 each.
An option to purchase an additional 15 per cent of the shares on offer has also been granted to the syndicate, exercisable at any time within 30 days of completing the financing.
In addition, the syndicate of underwriters will also be paid a cash commission totalling 5 per cent of the total funds raised under the financing.
Ascot Resources says that the proceeds will be used to fund the continued development of the Premier Gold Project, including the purchase of long lead-time equipment. A portion of the proceeds will also be used for general working capital and corporate purposes.
Ascot Resources (AOT) is currently down 2.22 per cent and is trading at 88 cents per share at 10:49am EDT.
